ahold delhaize capital markets · 2018-11-13 · capital markets day 2018 5 development activities...

Ahold Delhaize

Capital Markets Day 2018

US Digital & eCommerceJJ Fleeman

President of Peapod Digital Labs

Our brands have a leading US food eCommerce and digital business

3Capital Markets Day 2018

~6mAnnualized online

grocery orders~$1b

AnnualizedeCommerce sales

25+Dedicated eCommerce

fulfillment centers

1.6kPeapod driversengaging with

customers 2b+Annualized, personalized customer communications

US eCommerce & Digital

600mDigital Coupons Clipped

77%Sales made by

identifiable customers

~6mAnnualized online

grocery orders

3.2mMobile App downloads

15,250Products Rated

for Guiding Stars

9Scan & Go Pilot Stores

23%In-Store Kiosk Engagement

500mEmail/Push Communications

~50%Items in cart from digital personalization tools

A strong proprietary digital ecosystem for each brand

4Capital Markets Day 2018US eCommerce & Digital


Development activities this year

Opportunity Preparing for 2019

Full-scale Click and Collect rollout across all brandsClick and Collect at select locations

Different omnichannel capabilitiesand platforms for each brands

Integrated omnichannel capabilities and platform through Peapod Digital Labs

Customers choose their speed:Immediate, Same day, Next dayPrimarily next day delivery

Full assortment and same great prices onlineSelect assortment and

different pricing online

Separate brand loyalty across channels

Seamless brand loyalty across channels



Peapod Digital Labs has an ambitious plan for 2019

Proprietary digital

ecosystem

Innovation pipeline

Strategic partnerships

Click and Collect

network

NextGenfulfillment

Powering ADUSA’s Great Local Brands

Omnichannelgrowth engine


Enabling brand omnichannel growth through Peapod Digital Labs


Strong digital talent to drive PDL

400+ PDL associates dedicated to digital and eCommerce

Strong digital merchandisingand marketing

Own enterprise campaign management solutions

Personalized brand customer experience through data and analytics

Proprietary omnichannel platform to support each brand

Flexible architecture for continuous improvement

Leading data science and analytics for all aspects of the business

Next generation fulfilment to provide increased speed and coverage

Innovation hub to serve customers even better

Strong foundation today Investing now


Building an integrated omnichannel platform for each brand


Integrated omnichannel

platform

Same great prices

Localassortment

Consistent promotions

Singlesign-on

Integrated loyalty

Customizable by brand

Extensive personalization

Agilearchitecture

Continuous deployment

Build once and scale

Endless aisles

Note: *In-store only shoppers compared to omnichannel shoppers for total spend in Q3 2018

Brand platforms

Peapod commerce platform

Digital tools and technology


2-3xHigher spend by

omnichannelcustomers than

in-store only customers*

Delivering a best-in-class local omnichannel experience for each brand


Execute

Test and learn

Ideate

Same day delivery

Pod Bags for unattended

delivery

Curated meal kits

Virtual butcher shop

Endless aisle assortment

Automated fulfillment

Exclusive media

partnerships

An innovation pipeline to serve brand customers even better


Partnerships with universities

Collaboration with start-ups

Devoted innovation hub


Peapod Digital Labs

Expanding the portfolio of fulfillment methods


Automated MFC and HSC models

In-house and 3rd

party delivery“… And more” solutions

Click and Collect

Increasing speed and coverage


Today’s offerings 2020 vision

65%of brand

customers will have access

to same day

Immediate

Same day

Next day

Fastest available pick-up or delivery

Immediate

Same day

Next day

Fastest available pick-up or delivery


Expanding Click and Collect to 600+ stores by 2019


In-store pricing

Dedicated customer service

Best-in-class same day offering

2018

2019

~200Pick-up Points

600+Click and Collect

~50

Full store assortment

Integrated loyalty



Building automated micro-fulfillment, tailored to each brand’s local market

Faster Fresher Efficient Local

Reaching customers within 1 hour

Piloting automated

micro-fulfillment

with

“All-in” productivity of ~145 units per labor hour

Less than 12 months to build

$3-5m Capex for pilot facility

Reduced last mile expense

Build in our existing stores or other locations



This plan will accelerate food eCommerce sales growth for each brand

10%+2018E

20%+2019E

30%+2020E


Key takeaways


• Launching the digital and eCommerce engine to support each brand’s strategy

• Creating the digital ecosystem of the future

• Driving brand eCommerce growth through:• 600+ Click and Collect stores by 2019

• Same-day pickup & delivery to 65%+ of customers

• Rolling out NextGen fulfillment models

• Connecting all brand customers to omnichannel to expand loyalty and share of wallet

20%+

2019E

30%+

2020E


Cautionary notice

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words such entering 2019, plan, by 2020, will, our 2020 vision, fulfillment, by 2019, key takeaways, forecasted or other similar words or expressions are typically used to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.


Ahold Delhaize

Capital Markets Day 2018

ahold delhaize capital markets · 2018-11-13 · capital markets day 2018 5 development activities...

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